Fathers Death and Pensions

mprcomp

Hi,

My Father died just over a week ago and had two pensions. One with Greater Manchester Pension fund the other the NHS.

The GMPF he had been receiving for 12 years. I contacted them and said that the estate was unlikely to receive anything. Had letter today saying that a Child could get something so assume nothing for estate. Seems Scandalous when he paid in all those years. Is this normal?

The NHS pension I am awaiting to hear back but only retired last May and got lump sum of 15K from that in June of last year. Again what is likely hood from that sort of pension that something will come back? Just got a letter from them saying send in death cert and that is it nothing else.

Thanks in advance for any help and support.

xylophone

Is there a widow or any dependent children?

PeacefulWaters

Seems Scandalous when he paid in all those years. Is this normal?

It is normal. He's contributed to schemes that provide absolute guarantees. The amount he's contributed is very little compared to the cost of those guarantees.

It's possible that there is a spouse's pension if he's married. It's possible that there's a short term child's pension if he has a child in full time education. It's possible that if he's been drawing his pension for less than five years a sum may be paid out to effectively ensure he has received five years money.

The exact detail depends on the specifics of the schemes and others have better knowledge of that from me.

I'm sorry for your loss.

Silvertabby

I'm sorry for your loss, and that your father's pensions are adding to your stress.

I can answer your query re the Greater Manchester Pension Fund, as this is part of the LGPS. This pension had a 10 year guarantee period (5 years if he left before 2008), so as your father had been drawing the pension for 12 years there will be no lump sum death benefit payable. It seems that he wasn't married when he died, hence the letter mentioning the possibility of a child's pension, but that would only be payable up to the age of 18 (23 if in full time education) or for life if the child has certain disabilities.

If it's any consolation, your father would have received all of his LGPS contributions - and more besides - from his retirement lump sum and the 12 years he drew his pension.

hyubh

mprcomp wrote: »

Seems scandalous when he paid in all those years.

The LGPS back then had a contribution rate of 6% (5% for manual workers), giving a pension of 1/80 final pay for each year of service (uprated for inflation each year in payment) + a tax free lump sum of three times the pension. In a nutshell, he got back several times what he paid in.

greenglide

The NHS pension I am awaiting to hear back but only retired last May and got lump sum of 15K from that in June of last year.

I assume that a lump sum death benefit will be payable from the NHS scheme if it was only in payment for less than a year?

Silvertabby

“ The NHS pension I am awaiting to hear back but only retired last May and got lump sum of 15K from that in June of last year.
”
I assume that a lump sum death benefit will be payable from the NHS scheme if it was only in payment for less than a year? Posted by Greenglide

It depends. I had a look at the NHS regs, but this point is really complicated. Yes, there's a notional 5 year guarantee period, but there's not always a lump sum death benefit to pay. Seems if the member took maximum commutation when they retired, then that may have extinguished any entitlement to a death grant.

This is one question that only NHS pensions can answer, I'm afraid.

AnotherJoe

mprcomp wrote: »

Hi,

My Father died just over a week ago and had two pensions. One with Greater Manchester Pension fund the other the NHS.

The GMPF he had been receiving for 12 years. I contacted them and said that the estate was unlikely to receive anything. Had letter today saying that a Child could get something so assume nothing for estate. Seems Scandalous when he paid in all those years. Is this normal?

My commiserations, and yes it is normal and its not "scandalous".

Pensions spread the benefits out across all members. Some will contribute for shorter than others, some will get a pension for many times the length of the average member, others much shorter, others (most?) around the average.

To want something back after 12 years is in effect having your cake and eating it, in that you'd expect the benefit to be paid after retirement for possibly a very long number of years but also get something back if its not a long term, forget the balancing out across all members. 12 is probably only slightly shorter than the average I'd guess? Some schemes do do a payout before a minimum time, (EDIT I see its 10 in this case which is pretty generous) but 12 years seems well past that.

If it did work like that, that somehow you calculated the average term, and people who didn't make the average got a lump sum to their estate, then since there's only a certain amount of money, it would have to come from all the other members in some way.
Perhaps those who lived longer than the average would start getting a lower pension at the average" point, or everyone getting a lower pension all the time.